CCReflect

"Established companies are "held captive by their customers," in Christensen's phrase, and so routinely ignore emerging markets of buyers who are not their customers. Dominant companies prosper by making a good product and keeping their customer base by using sustaining technologies to continue improving it. The products get ever better-but at some point their quality overshoots the level of performance that even the high end of the market needs. Typically, this is when a disruptive innovation lands in the marketplace at a lower price and relatively poor level of performance-but it's a level adequate for what the lower end of the market seeks. The disruptive technology starts to attract customers, and is on its way to staggering the industry's giants. "Sustaining innovation makes good products better-but then you don't buy the old product. They're replacements. They do not create growth." To bring these powerful ideas into the real world, Christensen in 2001 founded the consulting firm Innosight (www.innosight.com) with Mark Johnson, M.B.A. '96. Now employing about 100, the company works mostly with Fortune 100 companies that are seeking to defend their core businesses and adapt to disruptive environments. It also coaches them on how to disrupt markets proactively, harnessing disruption's engine of growth for themselves. "It's hard to do both," says David Duncan, a senior partner at Innosight who earned a Harvard Ph.D. in physics in 2000. "As successful companies get bigger, their growth trajectories flatten out, and they need to find new ways to expand. But that will look different from what they did in the past. Most are so focused on maintaining their core business that when push comes to shove, the core will almost always kill off the disruptive innovation-the new thing. "The two goals conflict for resources," he continues. "CEOs are accountable to shareholders and feel Wall Street pressure to meet earnings targe

"What would institutions look like if their core rationale were scalable learning?  What if the reason we'll come together in institutions in the future is that we'll learn faster as participants in these institutions than we ever could on our own? "

"Collaborating effectively is craft, not science. There are common patterns underlying any successful collaboration, but there is no one way to do it well. It is too context-dependent, and there are too many variables. Even if best practices might be applicable in other contexts, most of us do not have the literacy to implement or adapt them effectively. We think we lack knowledge or tools, but what we actually lack is practice."